A Turner masterpiece worth more than £5 million and con- sidered a national treasure was on the brink of being lost to America last night.

The 1808 work, entitled Pope's Villa at Twickenham, had been displayed at Sudeley Castle in Gloucestershire for more than 160 years.

But in July the JMW Turner oil painting, which features the home of poet Alexander Pope on the river at Twickenham, was bought at auction by an anonymous American bidder for £5.4m.

The Government temporarily barred its export, allowing a British art gallery, museum or individual the chance to raise a matching total and keep it in the country.

But sadly, neither the National nor the Tate Gallery – the two obvious contenders to buy the painting – mounted a campaign to purchase it and at midnight the ban expires.

The painting was sold by Lady Elizabeth Ashcombe to maintain the grand castle situated in the pretty town of Winchcombe.

We have very large bills

Earlier this year she said: "Of course, it is a pity it is likely to leave Britain. We have needed to sell to maintain the castle. We have very large bills and only a smallish income from farm rents."

Unless a last gasp bid came forward to secure its future in Britain the Department for Culture, Media and Sport (DCMS) will today grant a license allowing the painting to go to America.

A spokesman for the DCMS said he would be amazed if anyone came forward now.

"The painting was given a three-month period to allow a British individual or institution to come forward to match the £5.4m offer," he said.

"They have until midnight to make it clear that they have got the money or seriously intend to raise it and then we could make a referral for a couple of months.

"But, as of this moment, no one has come forward and the strong expectation is that it is unlikely that the picture will remain in this country.

"Realistically if we were going to get someone who wanted it they would have come forward by now.

"There are very few institutions that would be able to raise this sort of money and sadly it looks as though this picture will be lost to America. I would be frankly amazed if anyone comes forward now."

Mrs Catherine Parry-Wingfield, of the Friends of Turner's House, said: "It's a very important painting. Pope's Villa at Twickenham is a painting in which Turner lamented the loss not just of a building but of the genius of the place, and of literary history.

"It would be tragic if the painting and all it imbues should itself be lost to England."

Sudeley Castle has struggled financially in recent times and has been forced to branch out into weddings and catering to meet costs.

Last September it was voted Wedding Venue of the Year at the Wedding Retailer Awards after it was the backdrop for Liz Hurley's £2m marriage to Arun Nayer.

It is not the first time the family have provoked anger. They have sold several valuable works over the past 20 years. Two were major paintings – Poussin's Temps Calme, which went to the Getty Museum in America for £15m, and Constable's The Lock, which sold for £10m.

Lady Ashcombe's daughter is Mollie Dent-Brocklehurst, art adviser to the Russian billionaire and Chelsea Football Club owner, Roman Abram- ovich.

Sudeley Castle's general manager Kevin Jones said the family were out of the country and unavailable for comment.